Passive component supplier Yageo has decided to not accept new orders for thick film chip resistors from channel operators effective immediately due to tight capacity, according to company sources.

While there is no timetable as to when it will resume taking new orders, the sources said the suspension will not affect orders from its international clients.

Commodity passive components, including MLCCs and chip resistors, currently account for 70% of Yageo's total production capacity, said the sources, adding that the company will not further expand its capacity for commodity components although there are shortfalls of these products currently in the market.

Yageo is utilizing the remaining 30% capacity for the manufacture of niche-type components for automotive, IoT, 5G and other industry uses, which yield higher gross margins and consequentially boost overall performance.

As a result, the company will expand its production capacity for niche-market products by 10-15% in 2018, revealed the sources. Niche-type components for automotive applications currently account for 5-10% of Yageo's total sales with the automobile market in North America and China being the major outlets.

Yageo currently has a production capacity of 90 billion units of passive components a month, accounting for 30% of global market share.

By: DocMemory
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